Banking Industry has to be good at developing new products. It must
also manage them in the face of changing tastes, technologies, Interest
rates, exchange rate and competitions. Every product seems to go
through a life cycle. It must go through several phases, and eventually
die as new products that better serve consumer needs came along. The
product life cycle presents two major challenges, First, because all
products eventually decline, the bank must find new products to replace
the declining one (The problem of new product development).
Secondly, the bank must understand how its product age adapts its
marketing strategies as product pass through life cycle. (the problem
of product life cycle stages) Hence, it is very important to look at
the problem of finding and developing new products, and them at the
problem of managing them successfully over their life cycles in the
banking industry and as well as its profitability.
Given the rapid changes in consumer states, and competition,
banks must develop a steady stream of new products and services. As a
matter of fact, bank can obtain new products in two ways, one is through
“Acquisition” that is buying a whole distress bank(s) a license to
offer other bank services. And secondly through “New Product
development in the banks own research and development department.
As the cost of developing and introducing major new products have
claimed, many large banks limited. First bank, Union bank, and United
bank for Africa, have acquired existing services rather than creating
new ones like these new generation banks, i.e. Intercontinental bank,
Trust bank, All State Trust bank, Ecobank, Guaranty Trust bank, Zenith
Bank and of course the case study of this research project that is bank
PHB Nigeria Plc. Kaduna. Though, other banks have saved money by
coping competitors’ mode of services.
However, new product implies original products improvements,
products (services) modification and new method of granting loans,
Financing, customers advice interest rate, mode of payment etc. that
the bank developed through its own research and development.
Importantly, the recent distress syndrome in compared with the
global technological and, economic changes has made the Nigerian
banking environment very competitive and dynamic.
The development has led to selective purchase or patronage of
product and services by customers, especially those that are still
skeptical about the longevity of the banks and viability of their
product. In this regard, marketing as an essential elements of
communication mix has becomes the sought after strategy not only to
already existing clients but also to non-potential one by any
enterprising bank in the country today when a promising idea come along
Bank PHB Nigeria Plc a venture team made up of the research who
develop the idea and other people from personnel, sales/marketing,
legal admin and foreign department or sections will team up to natures
of the products, protect and member stays with such product until its
has succeeded.